State Whether the Problem Relates to an Ordinary Annuity or an Annuity

question 101

Multiple Choice

State whether the problem relates to an ordinary annuity or an annuity due. A couple has determined that they need $400,000 to establish an annuity when they retire in 25 years. How much money should they deposit at the end of each month in an investment plan that pays an annual rate of 8%, compounded monthly, so they will have the $400,000 in 25 years? ​

• A)ordinary annuity
• B)annuity due

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Definitions:

Sporting Event

A Sporting Event is any competitive physical activity or game that follows specific rules, often engaging participants and sometimes attracting spectators.

Social Group

A gathering of individuals who connect with each other, share resembling qualities, and jointly hold a feeling of unity or identity.

Gathering

An assembly or meeting of people coming together for a common purpose, often for discussion, celebration, or community activities.

Emergent Norm Theory

Suggests that norms emerge spontaneously in groups during situations where traditional routines or norms are unclear or absent.